India bans battery scrap exports to boost domestic recovery of critical minerals

The government has banned the export of lithium-ion battery scrap, commonly known as black mass, to boost the domestic recovery of critical minerals such as lithium, cobalt, nickel, and manganese and to strengthen India's battery recycling ecosystem.

The Directorate General of Foreign Trade (DGFT) issued a notification on Tuesday changing the export status of the category from 'Free' to 'Prohibited'.

Black mass is generated when recyclers dismantle and shred end-of-life lithium-ion batteries from electric vehicles (EVs), consumer electronics and energy storage systems. The material contains recoverable quantities of critical minerals used in battery manufacturing.

The government announced the move as domestic recyclers grapple with feedstock shortages despite significant investments in processing capacity.

Industry estimates suggest India has built more than 100,000 MT of annual battery shredding capacity and over 60,000 MT of refining capacity, while domestic black mass generation remains below 15,000 MT per year.

Industry players have argued that exports of black mass reduce the material available to local processors and limit their ability to recover valuable minerals domestically.

The Material Recycling Association of India (MRAI) said the restriction would help conserve critical mineral resources and promote their recovery, recycling and processing within India.

"We appreciate the Government's efforts to conserve and secure India's precious critical mineral resources within the country, promoting their domestic recovery, recycling and processing," an MRAI spokesperson said.

The industry body said the measure aligns with the government's objective of retaining battery recycling resources in India rather than shipping them overseas for processing, thereby supporting the development of a domestic critical minerals value chain.